“ We welcome the move of the government to give infrastructure status to affordable housing. This status will make it easier for developers to access low-cost funds via foreign direct investment (FDI), external commercial borrowings (ECB) and domestic banking assistance. The need for collateral against loans will also stand reduced. Bank lending rates for housing loans coming down is a positive development and will help stir demand in the market and help clear up unsold inventory for the builders.”
Another positive move is to provide developers tax relief on unsold stock as liability to pay capital gains will arise only in the year a project is completed. This will help the developers plan their liquidity better. The move of considering the carpet area of 30 and 60 sq meters instead of Built up area of 30 and 60 sq meters will bring in more housing projects under the ambit of affordable housing and will encourage developers to introduce more such projects.”
“It is very positive for the industry that the Government is focusing on increasing public spending and reducing rate of interests. This should help in reviving the economy and help it achieve rapid GDP growth. By giving the infrastructure status to the housing segment, the government has given a further impetus to address the suppressed power demand which is critical towards providing 24X7 power to all. In the renewable energy sector, Government’s commitment to add another 20 GW of solar capacity is noteworthy and right step towards achieving 100 GW of solar by 2022. The year 2017-18 will be a hallmark year as the country gears itself to install the maximum ever MW in its history. The journey from MW to GW is well and truly happening.”